Quick Hit:

Tesla shares tumbled 14% Thursday as Elon Musk publicly broke with President Trump over the GOP’s tax cut plan, calling it a “disgusting abomination” that would “bankrupt America.” The political fallout triggered a massive selloff, wiping out $180 billion in market value.

Key Details:

• Musk denounced the GOP’s “Big Beautiful Bill” after it scrapped EV tax credits, saying it would devastate clean energy.
• Trump fired back, calling Musk ungrateful and threatening to terminate government subsidies and contracts.
• The feud is sparking investor fears and may strain Tesla’s regulatory standing and political alliances.

Diving Deeper:

Tesla stock suffered its worst single-day loss of the year Thursday, dropping over 14% and vaporizing $180 billion in market value. The steep decline came as CEO Elon Musk launched a public and bitter feud with President Donald Trump over the Republican-led tax cut bill, exposing a deep rift that has alarmed investors and shaken the electric automaker’s political standing.

The legislation, labeled the “Big Beautiful Bill” by Trump and hailed as the GOP’s keystone domestic policy, is set to repeal the federal $7,500 electric vehicle tax credit. Musk, who had once backed Trump’s reelection, now calls the bill a “disgusting abomination” that would “bankrupt America.”

The blowup has triggered panic among Tesla shareholders, some of whom worry Musk’s renewed combativeness could alienate key allies in Washington. “Amazingly Elon now attacking all the people he helped put in power,” investor Ross Gerber wrote on social media. “This should work out well for Tesla I’m sure.”

Tesla stock is now down 33% since Trump took office. Analysts say the battle isn’t just about EV tax credits—which could cost Tesla $1.2 billion annually—but about the broader risk Musk now faces from a Republican Party he helped elevate.

Tesla is already battling weakening demand across major markets and a backlash among both progressives and conservatives. The once bipartisan darling of American innovation is becoming a political lightning rod, wedged between shifting alliances and a culture war that Musk himself helped ignite.

While Tesla doesn’t depend heavily on federal contracts, Musk’s other ventures do. SpaceX holds billions in government deals with NASA and the U.S. military—potential leverage if political tensions escalate.

The market’s swift and punishing reaction also dealt a personal blow to Musk, knocking $21 billion off his net worth in a single day. The message from Wall Street was clear: political fights might generate headlines, but they can also destroy shareholder value.